The impact of human resource management practices on perceptions of organizational performance

Abstract

The business world has experienced dramatic changes in the global economic system in the last two decades. The traditional sources of competitive advantages, such as economics of scale, market regulations, are no longer as effective as the past. Instead of them innovation, speed, adaptability, and low cost are the new competitive sources in the contemporary business world. These new developments have increased the importance of the human resources, because the skills and abilities of the employees can produce the new competitive sources to the companies. A skilled and motivated workforce can provide the speed and flexibility to a company required by the new global economy. Besides the widespread interests of professionals to this new approach, the subject has also captured the attention of academics. There are lots of research in the field of Human Resources Management. However, in recent years academics have begun to look at the relationship between Human Resources Management practices and organizational performance or the company's Human Resource strategy on overall organizational performance. In this research, in order to find the relationship between Human Resources Management practices and perceptual company performance, Delaney and Huselid's (1996) questionnaire, that was translated and adopted into Turkish., was given to 88 company Human Resource Department presidents or vice-presidents.